A Stop-Loss Order

question 53

Multiple Choice

A stop-loss order:

• A) is the quickest way to have an order filled.
• B) allows buy orders to be filled at the lowest price.
• C) allows stocks to be purchased at the current market price.
• D) sells a stock when the market price drops below a specified price.
• E) is used to buy stocks at a 10% margin.

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Definitions:

Voidable

A legal term for a contract or transaction that, while valid, may be annulled or rescinded by one of the parties due to certain conditions such as fraud, duress, or mistake.

Mutual Assent

An agreement between two or more parties manifested by an offer and acceptance, which forms the basis of a contract.

Legality

Conformity with the law or adherence to lawful requirements.

Competent Parties

Individuals or entities that have the legal capacity to enter into a contract, including being of legal age and sound mind.